Twilio Upgraded to Outperform as Investors Anticipate Stronger Performance

Twilio (NYSE:TWLO) shares rose over 2% pre-market as Mizuho analysts upgraded the stock from Neutral to Outperform, increasing the price target to $140. This upgrade reflects optimism about Twilio’s revenue visibility and potential margin expansion ahead of its January 23 Investor Day.

The preliminary guidance for 2025 indicates 7-8% year-over-year revenue growth, signaling significant stabilization in Twilio’s performance. The company is also poised for double-digit growth beyond 2025, supported by stronger operational foundations.

A noteworthy improvement in operating margins, projected to rise from -0.1% in 2022 to about 16% in 2024, shows potential for enhanced operational income. Furthermore, a new share buyback program may be on the horizon, adding value for shareholders.